Many UK users are not getting the broadband speeds they are paying for

Broadband users in the UK are getting short-changed when it comes to their internet speeds, a survey has found. A survey by UK newspaper the Guardian online with 3,000 respondents indicated that there is a significant shortfall between the maximum speeds customers are promised and the speeds they actually receive.

The country-wide actual average broadband speed is 7Mbps, compared to the average 12Mbps headline figure, a gap of 42 per cent, the report found. The worst offenders were the ISP’s Sky and TalkTalk, with a 60 per cent difference between the advertised speed and the real-world speeds. Virgin Media customers were only slightly better off, with 30Mbps customers getting an average of 17.7Mbps. BT did best out of the survey, with its subscribers paying for 8Mbps and getting 6Mbps.

The report follows on the heels of new advertising rules introduced in the country in April, which state that ISPs can only claim ‘up to’ speeds if at just ten per cent of its users can achieve those speeds.

Virgin Media, the UK’s second largest ISP with a FTTC cable network, announced earlier this year that it is gradually doubling the speeds of all its customers during the year, with a headline figure now standing at 120Mbps.

The UK incumbent BT has just announced that it has now connected 10 million British homes to its FTTC network, enabling them to achieve speeds ‘up to’ 80Mbps.

The UK regulator Ofcom states that 2Mbps can be defined a ‘broadband’, and 18 per cent of the report’s respondents were identified as receiving less than this. Poor connectivity is a concern for the industry worldwide however. Apple co-founder, and Silicon Valley legend, Steve Wozniak revealed today that he does not have a broadband connection in his home, though admittedly it is available to him via cable, but chooses not to take up the service in protest as the cable telco’s monopoly in the area.

The Netherlands is the first European country to adopt a net neutrality law

The Dutch senate has passed a net neutrality law that makes it illegal for ISPs in the country to filter the internet. The laws, which were passed unanimously earlier this week, means that all traffic must be treated equally and may not be blocked or throttled. The Netherlands is the first European country to adopt such a law, and the second country in the world to do so after Chile.

The move ensures that end users have unfettered access to over-the-top services such as Skype, WhatsApp and Viber. What’s more, ISPs will not be allowed to alter prices to reflect the use of such services on their networks. Traffic may be blocked but only in where it is deemed necessary to ensure the integrity and security of the network or end user terminals.

An exception clause to the law does allow for ISP filtering when requested by customers, a clause that remarkably was voted for accidently last year by the Dutch Labour party, after a sub-amendment was proposed by the Dutch Reformed Protestant Party SGP and Christian Democrat Party CDA. Senator Han Noten of the Labour Party said that this would be corrected by a further amendment, after fears that it could lead to internet censorship.

Other changes in the law also restrict the use of Deep Packet Inspection and prevents ISPs from arbitrarily disconnecting customers without a court order or unless they have not paid. In addition, the law states that web sites cannot use cookies without first explicitly asking for user permission.

Bits of Freedom, the Dutch digital rights movement which campaigned for these provisions, welcomed the new law. “It considers this a historical moment for internet freedom in The Netherlands and calls on other countries to follow the Dutch example” it said in a statement on its web site.

While the Dutch stance is seen by many as progressive, there are some who have raised objections. Neelie Kroes, vice-president of the European Commission responsible for the Digital Agenda was vocal about reservations to the law in a speech last year when said that, “I regret very much that The Netherlands seems to be moving unilaterally on this issue. We must act on the basis of facts, not passion; acting quickly and without reflection can be counterproductive. For example, requiring operators to provide only “full internet” could kill innovative new offers. Even worse, it could mean higher prices for those consumers with more limited needs who were ready to accept a cheaper, limited package.”

Regarding net neutrality, Sean Williams, group strategy director at BT Group, told Telecoms.com that, “For me, the debate about net neutrality is about… would we as network providers ever discriminate between content or applications on the internet or otherwise impede them, such as Skype, or TV content? And we would say that we would not do that and we never have done.”

Neelie Kroes will be keynote speaker on Day One of the  Broadband World Forum, taking place on the 16 – 18 October 2012 at the RAI Exhibition and Convention Centre, Amsterdam, The Netherlands. Click here now to register your interest.

The EU has accused Slovak Telekom of abusing its market position in the countryThe European Commission has sent Slovak Telekom an anti-trust complaint over allegations that it has abused its market position. The EU regulator accused the local incumbent in Slovakia of stymieing competition by failing to open up its network to rivals and charging “unfair wholesale prices”.

The EU has said that Slovak Telecom has refused to unbundle its local loops and reduced competitor margins to unsustainable levels with its high wholesale charges.

“Alternative operators have experienced unreasonable and burdensome technical and commercial terms proposed by ST,” the European Commission said in a press statement. “Moreover, ST set its wholesale prices at a level that made it impossible for alternative operators to profitably enter and operate in the retail broadband market in Slovakia (margin squeeze). This has hindered the development of the broadband retail market in Slovakia.”

As its parent company Deutsche Telekom AG is liable for Slovak Telecom and as such could be hauled up in front of the EU to answer its objections.

The EU statement reveals that the Commission has not moved quickly in this case however, having first opened proceedings against Slovak Telecom in April 2009, and then against Deutsche Telekom in December 2010.

Both parties are now expected to reply in writing setting out their defence and can request an oral hearing to present their views on the case.

The Broadband World Forum is taking place on the 16 – 18 October 2012 at the RAI Exhibition and Convention Centre, Amsterdam, The Netherlands. Click here now to register your interest.

Europe dominates the global broadband top 10 connectivity chart, but South Korea leads

Countries in Europe enjoy the fastest average broadband connectivity globally, according to a report from global content delivery network Akamai. Details of the report, which is scheduled to appear later this week and revealed by GigaOm, defines a high-speed broadband connection as one that connected to the Akamai network in excess of 5Mbps.

The report shows that seven of the top 10 fastest connected countries are European, with the Netherlands the most connected of that group high-speed broadband penetration of 67 per cent. Others in the top 10 were Belguim, Switzerland, Latvia, Romania, Czech Republic and Denmark. However, the Dutch have to play second fiddle to South Koreas, which tops the overall list with a incredible high-speed broadband penetration figure of 83 per cent. Japan and Hong Kong comes in at 60 per cent and 57 per cent respectively, and the United States comes in 12th with 44 per cent.

The UK does not trouble the top 10 list and we await the full report to discover its placing. However, based on the report, the UK government’s stated aim of bringing of at least 2Mbps to every home and business appears to be decidedly under ambitious.

The report also focuses on the 100 fastest connected cities and the average speeds of the fastest cities were between 21.8Mbps and 8.5Mbs. The overall average was brought up by the peak speeds of the South Korean cities of Taejon and Taegu, which recorded speeds of 59.2Mbps and 56.7Mbps respectively.

The Broadband ip&TV Asia 2012 conference is taking place on the 15th-16th May 2012, KL Convention Centre, Kuala Lumpur, Malaysia. Go to the website now to register your interest.

Swindon will be the location for the first commercial LTE network in the UK

The English borough of Swindon is to become the first area in the UK to be covered by a live commercial LTE network courtesy of the 4G network wholesaler UK Broadband. The service will be aimed predominantly at public sector and businesses via a fixed-wireless services, but local residents will be able to take advantage of the network through retail partnerships via Mifi type devices, which it said would be available from September.

UK Broadband, the UK arm of Hong-Kong based PCCW, is making use of 40MHz of paired spectrum in the 3.4GHz band to create the network. It said the core transmission network will be by deployed in conjunction with outsourcing company Capita, via point-to-point and point-to-multipoint microwave links with 4G LTE layered over the top, creating the first city-wide 4G coverage in the UK.

Taking the lead in UK LTE will give Swindon another stab at fame, with the city first made famous as the location of the rival branch of The Office, as run by the fictional David Brent in the BBC TV series. UK Broadband CEO Nicholas James said in a statement that the move would enable Swindon’s real-life public sector workers to operate more flexibly and efficiently.

“The increased speed and reliability provided by the use of smart devices and superfast next generation mobile broadband will enable public sector workers to be more effectively and easily connected to their core office systems and data, whilst working in different localities. It will allow us to begin adopting working practices that will significantly improve the efficiency with which key services are delivered.”

The LTE World Summit is taking place on the 23-24 May 2012 CCIB, Barcelona, Spain. Click here to register your interest.

Orange has introduced a new cloud-based Telepresence service

Orange Business Services, the France Telecom owned brand, has announced the latest attempt to revitalise video conferencing, saying that conditions are now right for the technology to succeed.

At a press event that connected London, Paris and Beijing through its cloud-based video conferencing solution Telepresence Pass, the chief executive for Orange Business Services, Vivek Badrinath, said that a crucial difference of over previous iterations of the technology was that it was cloud-based enabling it to be fully managed by Orange.

Badrinath said it is attractive to users as it is very easy to use and that modern video usage had increased the appetite for video based communications. “Video as such is become much more important in interaction,” he said. “The fact that people watch short videos means that the taste for video communications has increased.”

Badrinath said a key benefit of the Telepresence Pass service was that it was compatible with multiple carriers and vendors such as Polycom and Cisco. He said Orange has 300 video staff trained to support the service worldwide and that it is backed by a 24/7 concierge service.

Orange said the service performs best when a dedicated telepresence room is used as these offers uniform conditions that optimise lighting and audio, which enhance the meeting experience. However, all conferences can also be accessed over the public internet using mobile devices such as PCs, and iOS powered phones and tablets.

To enhance the service, Badrinath said that Orange has invested €750m during 2011 to extend network coverage and improve QoS. Asia Pacific, Europe and U.S. are now interconnected using dual 10G belts, while Europe was enhanced with a 40G/100G optical network. Emerging countries meanwhile had benefitted from a 20 per cent increase in network capacity and coverage.

Pieter Schoehuijs, of Dutch paint company AkzoNobel, spoke at the launch to explain how it had successfully introduced the Orange technology to help connect its 80 global offices. In response to a question on whether there was any resistance from staff on using telepresence considering it would reduce the opportunity for travel, Schoehuijs responded that senior executives who would otherwise have to travel very frequently actually welcomed the technology. “The travel is fun to start with, but that chewing gum loses its flavour real quick,” he said.

Schoehuijs also highlighted the green credentials of the Orange service, stating that AkzoNobel had made an investment of €7-8m in the Orange Telepresence service but that it had saved the company about 50,000 hours a year based on 4,000 people participating in the teleconferencing, equating to 25 tonnes of CO2 emissions a year. “Not only is it financially attractive, but from a sustainability perspective, it’s quite frankly a no brainer,” he said.

The service is available now available directly on an Orange dedicated MPLS network in 67 countries, and up to 106 countries using leased lines. Costs range between €400-€4000 per month depending on the number of screens and requires 2Mb/s of bandwidth per screen for 1080p connectivity.

The Broadband World Forum is taking place on the 16 – 18 October 2012 at the RAI Exhibition and Convention Centre, Amsterdam, the Netherlands. Click here now to register your interest.

VHA has said it will enter the fixed line market in Australia thanks to the NBN

Vodafone Hutchinson Australia has said that the much criticised NBN fibre-to-the-premises project is vital to support mobile connectivity, the Register has reported. At an open public hearing of the Joint Committee on the National Broadband Network, Matthew Lobb, Vodafone’s general manager of public policy, told the committee that the argument that “because consumers love mobile tech they don’t like wires so the NBN is not important” was misleading and that “getting fixed line right is absolutely crucial for mobile networks.”

The mobile operator also said that the NBN programme was good for competition and would enable it to enter the fixed line broadband market in the country. “Globally, Vodafone is quite an active fixed line player… but Australia has not been an attractive fixed line market because of the dominance of Telstra. The recent reforms and the NBN have changed our thinking in that regard.”

The Australian NBN has been much maligned by many analysts and observers for its cost, particularly after it paid Telstra AUS$11.8bn for its copper network. At last year’s Broadband World Forum, the Australian shadow minister for communications and broadband Malcolm Turnball described it the NBN as “the most expensive, most anti-competitive broadband network in the world.”

VHA also came out in support of Chinese vendor Huawei, who was recently blocked from submitting a tender for the NBN due to security concerns.

In response to questions from MP Rob Oakeshott, the Committee’s Chair regarding VHA use of Huawei equipment, Lobb said the company “uses Huawei a fair way out of our network… in base stations and so on. It is an important part of our network and is delivering good results.

“The important thing to understand is that security is a vital part of any telco’s business. Consumers and government must trust us, so we have a strong interest to make sure the right protections are in place. We are confident they are in place.”

The Broadband ip&TV Asia 2012 conference is taking place on the 15th-16th May 2012, KL Convention Centre, Kuala Lumpur, Malaysia. Go to the website now to register your interest.

Adi Kusma is president of Biznet Networks, Indonesia

Adi Kusma is president of Biznet Networks, one the leading telecoms providers in Indonesia. He is appearing on Day One of the Broadband ip&TV Asia 2012 conference, taking place on the 15th-16th May 2012, KL Convention Centre, Kuala Lumpur, Malaysia. Telecoms.com speaks to him about the major developments and challenges in the region.

What is the core technology your network is currently based on and what are the development plans for the future?

We’re using Metro Ethernet and GE-PON for our business market and HFC network for consumer market. We think picking the best technology for each market segment is important.

What major developments have there been for the broadband industry in your region over the past year?

The major development in Indonesia is mobile broadband, due to a lack of fixed-line cable infrastructure.

Speed is often touted as a priority, but some view the major challenge to be coverage and network capacity. What is your view?

The main issue is area coverage, but the main obstacle is the service price. To deliver an affordable broadband service for the market is really the challenge.

Is FTTH really necessary for businesses and consumers and what are the stumbling blocks to rolling it out?

FTTH is suitable for businesses, but for consumers FTTH investment might be too expensive. The main problem of rolling out is the permit issue on the area.

To what extent can fixed wireless connections help in the roll out of broadband connectivity?

Fixed wireless connections are also suitable for business markets, where users don’t move much. For the consumer market, mobile wireless connections are a huge opportunity, especially with LTE technology.

Will the dominance of mobile connectivity limit the growth opportunities for fixed line connections?

I think each technology has its own benefit and function, fixed line is suitable for high bandwidth, business and consumer market, while mobile wireless is suitable for low bandwidth with mobility. Each technology will complement each other depending on the usage.

What is your stance on bandwidth caps, line throttling and traffic management?

I think to ensure better network performance for all users, all of those must be implemented. Sometimes when users see unlimited packages, they would like to abuse the network to use as much as possible, and it causes problems for other users too.

What are the trends in terms of data traffic and how is it affecting your network expansion plans?

Video is the main use of bandwidth for now. People have changed the way they see entertainment moving from traditional broadcast content to interactive video on demand content over internet. The total bandwidth uses more than doubles every year.

What are the biggest challenges you expect to be facing over the next 12 months?

Our main challenges are obtaining permits to deploy a new network and the creation of advanced mobile broadband technology that has very large bandwidth.

Why is your attendance at this event so important for you and your company and what aspects are you looking forward to most?

We’re looking to see new technologies and case studies and see where the market is going in the near future.

The Broadband ip&TV Asia 2012 conference is taking place on the 15th-16th May 2012, KL Convention Centre, Kuala Lumpur, Malaysia. Go to the website now to register your interest.

Heru Sutadi is Commissioner at the Indonesian Telecom Regulatory Authority

Heru Sutadi is Commissioner at the Indonesian Telecom Regulatory Authority. He is speaking on Day One of the Broadband Asia 2012 conference on the 15th-16th May 2012, KL Convention Centre, Kuala Lumpur, Malaysia. Ahead of the upcoming conference Telecoms.com talks to him about the challenges facing service providers and operators in rolling out broadband in the country.

What is the core technology your network is currently based on and what are the development plans for the future?

We use two kinds of technology, fibre-optic cable and wireless to provide broadband in Indonesia. Mostly we use 3G/HSPA-based wireless broadband technology and Broadband Wireless Access (BWA) spectrum at 2.3 GHZ due to it being easier to implement in open and widespread areas such as Indonesia. In some cities we have already provided FTTH with fibre optic. We also use fibre optic for  our backbone. In the future we plan to build a fibre optic backbone in the Eastern part of Indonesia. For wireless access we have allocated a second carrier and are preparing for a third that will be a 3G-based operator. The 2.3GHz spectrum in the county is technology neutral so it’s just a matter of time matter for Indonesia to adopt LTE at this frequency.

What major developments have there been for the broadband industry in your region over the past year?

Last year we allocated a second carrier as a 3G operator, so there are now five operators with 2 x 10MHz in order to provide broadband. We have provided broadband in 5000 districts as part of our broadband services obligation. We hope that by 2015 all 72,000 villages will have broadband connection and half of the Indonesian population (119milion) will be connected to the internet as per our World Summit on the Information Society (WSIS) commitments.

Speed is often touted as a priority, but some view the major challenge to be coverage and network capacity. What is your view?

Our priorities are coverage and network speed. The first is coverage. We want broadband to cover all of Indonesia with a minimum standard rate of 256kbps. After that, step-by-step we will increase that rate. Based on user demand, in big cities like Jakarta, we are already looking at how to increase speed levels.

Is FTTH really necessary for businesses and consumers and what are the stumbling blocks to rolling it out?

In some cities: Jakarta, Bandung, Surabaya, some homes are already connected to fibre optic. But not all areas can be serviced with FTTH due to Indonesia’s very large, very unique geography. We are separated by the sea and because of that it’s often not easy to lay cables to homes, so in these situations wireless network are easier implement

To what extent can fixed wireless connections help in the roll out of broadband connectivity?

Wireless connections are helpful for the Indonesian situation. Maybe we can say that wireless broadband is our priority rather cable broadband. That said, in some areas or city we provide broadband by fibre optic cable due to it being more stable and able to deliver more speed than wireless.

Will the dominance of mobile connectivity limit the growth opportunities for fixed line connections?

Between mobile connectivity and fixed line they will complement each other. Personal connectivity with a smartphone is the wireless market, but for home that’s a fixed line market and each has its advantages and disadvantages.

What is your stance on bandwidth caps, line throttling and traffic management?

Actually, we do not regulate these things, but some consumers have already sent complaints to us, so we have a plan to regulate QoS for data connections. From our Consumer Protection law, providers must give clear and complete information in their ads, so consumers know the terms and condition when they are using data connections.

What are the trends in terms of data traffic and how is it affecting your network expansion plans?

Data traffic is increasing due to increasing use of smarphones such as Blackberry, which holds the top position in Asia Pacific, the iPhone, or tablets. Facebook and Twitter use contribute significantly and that affecting expansion of broadband network in Indonesia.

What are the biggest challenges you expect to be face over the next 12 months?

Our big challenges will be especially related to spectrum frequency as some 3G operators feel that 2x10MHz is not enough. Other issues are how to provide backbone connections to connect Western and Eastern Indonesia, how to build internet exchanges in five big islands and how to connect the National Internet Exchange to TIER-1, so not all traffic needs to go through Jakarta.

Why is your attendance at this event so important for you and your company and what aspect are you looking forward to most?

From this event I hope I can get new information regarding latest the broadband technology. I hope to share experiences with other delegates on how other countries implement and deliver broadband to its citizens with all problem and challenges and how to best solve them.

The Broadband Asia 2012 conference is taking place on the 15th-16th May 2012, KL Convention Centre, Kuala Lumpur, Malaysia. Go to the website now to register your interest.

Praveen Rajan, Head of Internet & Services, DiGi Telecommunications, Malaysia

Praveen Rajan, Head of Internet & Services, DiGi Telecommunications, Malaysia is speaking as part of the Emerging Market Experience Exchange the day before the Broadband ip&TV Asia 2012 conference, 15th-16th May 2012, KL Convention Centre, Kuala Lumpur, Malaysia. Telecoms.com catches up with him to see what the major concerns and issues are for this local operator.

What major developments have there been for the broadband industry in your region over the past year?

The region is noted for aggressive competition, especially from new 3G players and WiMAX operators. We have pioneered selling 3G broadband as a complementary service to fixed broadband services. The market is also beginning to see voice plans with bundled data quotas. For us a major development will be the introduction of LTE. Smartphone usage is rising fast, and there is more demand for wider 3G coverage. We currently offer HSPA and EDGE nationwide and will be moving towards LTE in the near future.

Speed is often touted as a priority, but some view the major challenge to be coverage and network capacity. What is your view?

Speed is secondary to consistency of the network. Coverage, capacity and consistency are key pillars to a great user experience. Most customers, especially on smartphones, do not realise the speeds they are getting, and it is difficult to tell the difference at a certain threshold. For example, moving from 3Mbps to 7Mbps may not show real improvements in web and email usage.

Is FTTH really necessary for businesses and consumers and what are the stumbling blocks to rolling it out?

Personally, I believe that FTTH will continue to be relevant as a primary broadband service in key market centres. Operators that choose to do this need to be fully aware of the cost dynamics and expectations from customers. However, we are focused on the wireless business and not FTTH.

To what extent can fixed wireless connections help in the roll out of broadband connectivity?

Fixed wireless is seen as a primary way of getting connected for most households in Malaysia. The technology is able to manage throughput and capacity better than conventional wireless. Mobile broadband will continue to be relevant with the rise of new devices such as smartphones and tablets. There will be some parts of Malaysia that may rely on wireless broadband using USB modems as a primary way to get connected to the internet.

What is your stance on bandwidth caps, line throttling and traffic management?

Caps, quotas, throttling and traffic management are crucial today to ensure data profitability. These should be communicated up front to customers, and we should move away from communicating “unlimited” plans.

What are the biggest challenges you expect to face over the next 12 months?

The biggest challenges will be balancing value propositions between 3G and LTE, and meeting customer expectations on speed and performance.

Why is your attendance at this event so important for you and your company and what aspect are you looking forward to most?

Data is a big focus for most operators so we are looking to learn from other operators through case studies of product and network rollouts.

The Broadband ip&TV Asia 2012 conference is taking place on the 15th-16th May 2012, KL Convention Centre, Kuala Lumpur, Malaysia. Go to the website now to register your interest.